Airtel Africa Plc has released its financial results for the nine months ending December 31, 2023.
The group posted a profit after tax of $2 million in 9M 2024, reflecting a 99.6% year-on-year decline from the $523 million posted in the corresponding period of the previous fiscal year.
The decline in the company’s profit profile is attributable to the total finance cost of $1.238 billion which the company accrued in 9M 2024. Notably, $748 million of this total cost was due to the Naira devaluation from N461/$ in June 2023 to $952/$ in December 2023.
In 9M 2024, the group recorded a revenue of $3.861 billion, representing a 1.4% year-on-year decline from the $3.914 billion posted in the corresponding period in the previous fiscal year. The group also reported an operating profit of $1.293 billion in 9M 2024, down by 1.9% from the $1.318 billion reported in 9M 2023.
In a bid to measure organic performance by adjusting results for non-recurring or uncontrollable factors, the group’s financial results featured the Alternative Performance Measure (APM). With the APM, percentage changes were determined in constant currency terms. In this case, the constant currency exchange rate used was N752.2/$.
Using the APM, the group’s revenue in 9M 2024 appreciated year-on-year by 20.2%.
Key Highlights 9M 2024 (9M 2023, % Change)
- Revenue: $3.861 billion ($3.914 billion, -1.4%)
- EBITDA: $1.908 billion ($1.916 billion, -0.4%)
- EBITDA margin: 49.4% (49.0%, +47 bps)
- Operating profit: $1.293 billion ($1.318 billon, -1.9%)
- Total finance cost: $1.238 billion ($519 million, -138.7%)
- Profit before tax: $55 million ($801 million, -93.1%)
- Profit after tax: $2 million ($523 million, -99.6%)
- Average revenue per user: $3 ($3.3, -9.7%)
- Total customer base: 151.2 million (138.5 million, +9.1%)
- Data customer base: 62.7 million (51.3 million, +22.4%)
What you should know
The greatest source of revenue for the group in 9M 2024 was voice revenue, which contributed about $1.707 billion (44.2% of the group’s total revenue). There was an 8.8% year-on-year decline in the group’s voice revenue, from $1.872 billion posted in 9M 2023.
The group’s data revenue hit $1.343 billion in 9M 2024, representing a 1.9% increase from the $1.318 billion recorded in 9M 2023.
The group’s total finance cost of $1.238 billion was predominantly influenced by losses of $748 million incurred in derivatives and foreign exchange due to the devaluation of the Nigerian Naira from N461/US$ to 952.
The first devaluation which took the exchange rate to N777/$ in June 2023 (Q1 2024) contributed a loss of $447 million. A further devaluation of the Naira to N952/$ resulted to a further loss of $301 million.
The devaluation of the Malawian Kwacha in November 2023 also contributed to the group’s finance cost in 9M 2024.
Excluding the impact of the currency devaluation, the post-tax profit for the nine months ending December 31, 2023, could have reached $537 million.
